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Formulating and prioritizing crm implementation strategies in mehr eghtesad ba

  1. 1. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 40 FORMULATING AND PRIORITIZING CRM IMPLEMENTATION STRATEGIES IN MEHR EGHTESAD BANK OF IRAN USING COMBINATIONAL MODEL OF PIP AND ANP Allahyar Beigi Firoozi1 , Mehran Aslaniyan2 , Faranak Yusefvand3 , Mojtaba Pahlavani4 1 Marketing consulter of Mehr Eghtesad Bank, Mehr Eghtesad Bank, Amiralmomenin Avenue, Zahedan, Sistan and Baluchestan, Iran 2 PhD Student of Human Resource Management, Department of Management, University of Sistan and Baluchestan, Daneshgah Avenue, Zahedan, Iran 3 MSc of Human Resource management, Islamic Azad University of Borujerd, Lorestan, Iran 4 MSc of IT management, Department of Management, Daneshgah Avenue, University of Sistan and Baluchestan, Zahedan, Iran ABSTRACT This study aimed to identify encouraging and restraining forces for implementation of Customer Relationship Management (CRM), as well as formulate and prioritize suitable strategies for it in Mehr Eghtesad Bank in Sistan and Baluchestan province. In this research, encouraging and restraining forces were identified through studying literatures and interviews with managers and heads of branches. In order to prioritize forces, a 9-scale questionnaire was designed based on ANP method and they were completed by 30 managers. In the second step, the most suitable strategies of CRM implementation in Mehr Eghtesad Bank of Sistan and Baluchestan were formulated by using PIP model. Finally, for prioritizing the strategies, paired comparison was established between formulated strategies based on research criteria. Results showed that “Providing insight and deep understanding about customers' behaviour” with the scale of 0.06903 among encouraging forces and “Lack of staff's belief toward CRM” with the scale of 0.05319 among restraining forces were the most important ones. Also, "persuading employees about advantages of implementing CRM and increasing their customer-orientation incentives" was proposed as the best strategy. Keywords: Analytic Network Process (ANP), CRM, Mehr Eghtesad Bank, PIP model, Strategy. INTERNATIONAL JOURNAL OF MARKETING AND HUMAN RESOURCE MANAGEMENT (IJMHRM) ISSN 0976 – 6421 (Print) ISSN 0976 – 643X (Online) Volume 4, Issue 2, May - August (2013), pp. 40-53 © IAEME: Journal Impact Factor (2013): 4.6901 (Calculated by GISI) IJMHRM © I A E M E
  2. 2. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 41 1. INTRODUCTION Customer Relationship Management (CRM) is one of the newest issues in the late twentieth century (after production and mass marketing) which were raised by developments in information and communication technology (ICT) in business world (Mohammadi, 2003). This concept refers to the fact that different customers demand different products and services and we should do specifically marketing for each customer rather than mass marketing for individuals and organizations. In other words, customer relationship management will take all functions of organization (marketing, manufacturing, customer service, etc.) that require direct or indirect contact with customers (Elahi & Heidari, 2008). Customers tend to organizations which know them and their needs well and build better relationship with them. According to this view, it is being tried to attract customers' satisfaction by making relationships with them and qualify these relations (Liu, 2009); because nowadays, consumers have higher expectation than before. They used to low cost as well as high quality and variety; if their satisfaction is not obtained, they may simply tend into competitors; especially in today's business world that competition is much more complex (Doroudian & Khanbaba, 2007). Therefore, Customer Relationship Management is a strategic necessity and undeniable matter for all organizations that can directly affect customer attraction, make permanent and loyal customers, and subsequently can increase the profitability of organizations in the competitive environment (Pierce, 2009). According to researchers, attracting new customers is much more expensive than keeping existing ones; attracting a new customer costs about 7 to 10 times more than maintaining old and current customers (Gebert et al, 2003). Meanwhile, organizations, especially banks, have concluded that customers are their most important asset. Privatization of financial industry, expansion of trade for international financial institutions, and diversification of customers' needs in financial services have led to intense competition in banking industry. Due to this intense competition, resources and abilities in banks have been changed from product-oriented or service-oriented banking services into customer-oriented services and capabilities; customer as an essential component is the main goal of banks' activities (Gilmore and Mc Mullan, 2008). Hence, customer relationship management as a client-centered approach based on information and communication technologies has been increasingly used by banks and financial institutions which made significant investments in this area (Sinha and Sen, 2011). Because in its evolutionary way, marketing is in the stage that finding new customers is not the only aim; the main focus is on demand management through development and leading customers into loyalty. Today, customer satisfaction is not enough for maintaining them. Beside satisfaction, their loyalty should be ensured (Elahi and Heidari, 2008). The objective in CRM is to establish interactions and long-term relationships with banks stakeholders, especially customers, in such a way that more customers maintain and less customers leave the bank; more market share and increase in profitability would be the outcome for banks (King, 2008). 2. THEORETICAL BACKGROUND AND LITERATURE REVIEW 2.1. Customer Relationship Management Philosophical foundation of CRM is relationship marketing, customer retention, profitability, and making the processes of business management satisfactory (Chen and Papovic, 2003). In fact, this is a strategy which can be used to gather customers’ needs and business practices in order to have stronger relationships with them; and strong relationship with customers is the most important key to success in any business. CRM consists of three main parts: Customer, Relationship, and
  3. 3. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 42 Management. “Customer” is the ultimate consumer with supporting role in value creation relationships. By “Relationship”, it means creating loyal and profitable customers through learning communications. “Management” is creativity and the process of customer-oriented business as well as putting customer at the focus of organization's processes and practices (Singh et al., 2013). Today in organizations, strategic importance has been paid to customer relationship management. In the competitive conditions, organized and in-time relationship with customers is the best way to increase customer satisfaction, increase sales, and reduce costs at the same time. Due to these issues, customer relationship management in organizations is kind of business strategy (Abir Khan et al., 2012). In Cutler’s view (2003), customer relationship management is a concept based on the philosophy of using marketing to create customer relationship. Gronerus (2000) defines CRM in services marketing as a communication process between the customers and organization services in order to attract and maintain customers which is eventually led to customers trust on using organization services (Siriprasoetsin et al., 2011). Brown views CRM as a business approach that combines infrastructure strategies, products, and channels to influence customer behavior through meaningful communications. He also believes that implementation of CRM aims in improving customer attraction and maintenance and increasing profitability (Sen and Sinha, 2011). Hawks (2000) states customer relationship management is a necessity for competitive industries, because companies can maximize their profitability from each customer by using CRM in such a condition. Osgender and Ayraz (2006) consider CRM as a key strategy for business in which a company can focus on customer needs and promote customer-oriented approach in organization (Liao, 2009). 2.2. PIP Model Rapid development of technology, rapid growth of economic markets as well as social and political changes are continually putting pressure on organizations and making challenge for them as encouraging and restraining forces. It is important for organizations to be in improvement way, move into the future, and rely on past experiences. These experiences may even be irrelevant with new problems that are ahead, but if an organization makes suitable strategy based on environmental forces, it will have the foresight rather than passive approach (Gholizadeh, 2010). As mentioned before and based on PIP (Performance Improvement Planning) method, at first problems are identified, analysed, and stemmed; then encouraging and restraining forces effecting on making potential problems or solving current problems are determined. Finally, strategies are formulated to apply encouraging forces and prevent restraining forces; then practical improvement programs are determined. The process of PIP model is summarized in Table (1) (Davari & Shanesarzadeh, 2001). Table (1) PIP Model Process ActivitiesStages Determining performance indicators and goals priorities Predicting future performance First stage Identifying and analyzing performance problems Determining encouraging and restraining forces Stemming and clustering problems Assessing relative strength of encouraging and restraining forces Second stage Formulating strategy based on encouraging and restraining forces Deep thinking to create new ideas Identifying potential and actual facilities Formulating a performance improvement plan for organization Third stage
  4. 4. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 43 2.3. Analytic Network Process (ANP) Analytic Network Process is a new theory which develops Analytic Hierarchy Process (AHP) to address dependency in feedback; to do so, the super-matrix approach is used. Sa’ati established ANP method to solve problems on which there is dependency between options or criteria (Monavarian et al., 2011). ANP is composed of three major steps as follows: Step 1: Establishing model and problem structure: problem should be clearly stated and divided into a rational system, like a network. The network structure can be determined by decision-makers at brainstorming meetings or other methods (Alem Tabriz & Bagherzadeh Azar, 2010). Step 2: Paired comparisons matrices and priority vectors: in Network analysis method, like AHP, elements in each component are compared in pair according to their importance in standard control; components are also compared in pair with respect to their impact on the target. In this stage, paired comparisons of criteria and sub-criteria are carried out and their mutual effect on decision makers are asked in a series of paired comparisons. In addition, if there is interaction between elements of a component, effects on elements must be shown using paired comparisons and obtaining eigenvector. The relative importance is achieved using a relative scale; for example, a scale of 1 to 9 can be used. While score 1 indicates equal importance of two elements, score 9 represents the highest importance of an element (row of matrix) compared to another (column of matrix). In a paired comparison matrix, the value of other side is opposite. In ANP, like AHP, paired comparisons are made in the form of a matrix and local priority vector is achieved by assigning the relative importance associated with elements (or components). Paired comparison between dependencies in the network can also be considered at this stage (Liao et al., 2011). Step 3: Super matrix formation: ANP elements are interacting with each other. These elements may be decision-makers, criteria, sub-criteria, results, options and anything else. Relative scale of each matrix based on paired comparison is computed like AHP method. The result scales are put in the super-matrix and show interactions between system components. General form of super-matrix is shown in Fig(1) In this figure, ‫ܥ‬୒ shows Nth cluster; ݁୒୬ is nth element in Nth cluster, ܹ௜௝ is block matrix consisting relative scales of “w” vectors and the effect of elements in ith cluster on jth cluster. If ith cluster have no effect on its ith cluster (inner dependency mode), ܹ௜௝ will be zero. Figure (1) general form of Super-Matrix
  5. 5. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 44 In the end, final priority for each element of each subgroup is achieved based on Markov process as follows (Rahimi and Eshghi, 2009): Lim௞՜∞ ܹଶ௞ାଵ (1) 2.4. Literature review In relation to this study and successful implementation of customer relationship management, researches have been done worldwide that some of them are mentioned here: Kazemi et al. (2013) had a study entitled "Formulating development strategy for sustainable tourism in Lorestan based on PIP and ANP models". The research population included all tourism experts in the province. By judgmental sampling, 30 individuals were identified and questionnaires were distributed. After data analysis, it was found that strategy (1-A) with emphasis on increasing employment in the province has been suggested as the best strategy from the perspective of experts. Anvari et al. (2005) had a study entitled "Comparative evaluation of banking service quality from the perspective of customers and employees in Bank Refah". The purpose of this paper is to determine the factors affecting the quality of banking services, to evaluate the importance or factors affecting the quality of services on customers’ and banking service providers’ perspective, to analyze the correspondence between customers’ and service providers’ view toward banking service quality, and ultimately to develop performance improvement of banks. In order to determine factors affecting the quality of banking services, the scientific articles, banking and academic experts’ and practitioners’ point of view was used. To evaluate the importance of the elements, reliable and adequate sample viewpoints of customers and bank employees were taken and analyzed. The results of statistical analysis proved significant difference between customers’ viewpoints and employees’ viewpoints about the importance of quality components. In addition, results indicated significant differences between prioritizing customers’ and bank employees’ corrective actions to improve service quality. Nazemi et al. (2005) studied on determining the role of new ways of banking services providing to attract customers and improve the efficiency of the banking system (a study in branches of Bank Sepah in Mashhad). In this study, considering two populations of customers and managers and using multiple classified sampling method, statistical samples of 416 and 39, respectively, were selected and questionnaires were distributed. Reliability of questionnaires was confirmed Cronbach’s alpha coefficients of 0.84 and 0.92. For data analysis and to test research hypothesis, ratio test and contingency tables and chi-square test were used. ANOVA and Duncan's test were used to investigate the relationship between general characteristics of the respondents (moderator variables) with the number of new ways of banking services providing. The results showed that the new techniques for providing banking services increased customers in branches of Bank Sepah in Mashhad, But these services has not resulted in increasing efficiency (reducing costs and time). Motameni & Jafari (2009) investigated CRM implementation in hotel industry in Iran. CRM implementation conditions in Iran’s hotel industry were evaluated based on Gartner model and important factors to implement CRM technology were determined. After analyzing data, it was found that Iran’s hotel industry has major weakness in such fields as considering changes in the customer life cycle, data collection and analysis and converting them into knowledge to apply for hotel planning, using new methods such as website, etc. It also has strengths in important factors like senior management’s attention to attract and retain customers for long-term periods, getting feedback from customers and others, etc. Overall, based on results obtained in this study, it can be said that Iran’s hotel industry is capable of implementing CRM successfully. Keramati & Nikzad (2008 had a study entitled "Assessing critical success factors for CRM strategy in Textile industry using fuzzy approach". In this research, criteria and indicators as critical
  6. 6. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 45 success factors (CSFs) which are important for implementing customer relationship management in textile industry were determined considering three key aspects of technology, processes, and human factors. Using critical success factors, a questionnaire was designed based on pair-wise comparison tables and fuzzy numbers, which were responded by seven marketing directors in textile companies. Then, tables were analyzed within AHP Fuzzy method and prioritizing CSFs were identified. The main objective of the study was to describe and determine validity of a model based on critical success factors to be the guideline for implementation and evaluation strategy of customer relationship management in textile industry. Siriprasoetsin et al. (2011) in a study entitled "Factors affecting the performance of customer relationship management" used quantitative and qualitative approaches. Collected data were analyzed by Pearson correlation test, factor analysis and multiple regression. Factors affecting the performance of CRM were identified as CRM knowledge and understanding by staff, leadership, communication and organizational culture, and customer management process. Results showed that all of these factors have significant meaningful relationship with CRM. Bohling (2006) in his study entitled "Applying CRM: insights and issue of effectiveness" shows CRM success factors as follows: top management support, clear goals and strategy, and change management. Lindgreen et al. (2006) provided a tool in their research to assess the relationship management. They cited the most important factors for relating customer as: information technology (IT), people, and organizational culture. As mentioned in research background, different researchers suggested several CSFs for successful implementation of CRM. Table (2) lists the most important factors influencing the success of customer relationship management. Table (2) Key success factors in CRM implementation Success FactorsResearcher(s) Leadership and Organizational CultureButtle (2004) People Lindgreen (2006), Buttle (2004), Yang and Tu (2013) IT Croteau (2003), Buttle (2004), Lindgreen (2006), (Kim (2010) Clear strategy for CRMKim (2010) Change ManagementBohling (2006) 3. RESEARCH METHODOLOGY In terms of data collecting, this study is a descriptive-survey and in terms of target, this is an practical study. Literature reviews, interviews, and a questionnaire were used to collect and analyze data. The population in this study consisted of managers, experts and heads of branches in Mehr Eghtesad Bank in Sistan and Baluchestan province. Judgmental sampling method in the case of purposeful and non-probable was used. So, due to limited number of research population and after analysis and identification of experts, 35 questionnaires were distributed; 30 questionnaires were collected and analyzed. Analysis method in this study includes four main stages: at the first stage, research objectives and the criteria for achieving them have been determined. Secondly, based on the criteria identified in the first stage, research sub-criteria- encouraging and restraining forces for implementation of CRM- were identified. Third, the criteria and sub-criteria of research were
  7. 7. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 46 prioritized and strategies have been formulated for the most important encouraging and restraining forces for CRM implementation in Mehr Eghtesad Bank in Sistan and Baluchestan. In the fourth stage, the strategies presented in the third stage were prioritized and finally suitable strategy for CRM implementation was selected. Figure 1 illustrates an overview of research processes and the combinational model. 4. RESEARCH FINDINGS 4.1. First stage: Determine research objectives and criteria for achieving them The main objective of this research is to formulate and select CRM implementation strategy in Mehr Eghtesad Bank in Sistan and Baluchestan. In order to achieve this goal and after reviewing the literature, four factors of people, information technology, clear strategy for CRM, and change management were identified. 4.2. Second stage: Identifying encouraging and restraining forces in CRM implementation, based on research criteria At this point, after reviewing the literature and doing interviews with experts and executives in Mehr Eghtesad Bank in Sistan and Baluchestan, encouraging and restraining forces affecting Figure(2) research overview and combinational model of PIP & ANP Selecting CRM implementation strategy …1-A 2-A 3-A N-A )1-C()2-C()3-C()N-C( Factors with positive effect- encouraging forces )1-P( )2-P( . . . Factors with negative effect- restraining forces )1-N( )2-N( . . . First stage Second stage Third and fourth stage …
  8. 8. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 47 CRM implementation at Mehr Eghtesad Bank were identified as follows: considering people’s customer-orientation potential, IT platform, clear strategy for CRM, and need for change management. Table (3) identifying encouraging and restraining forces in CRM implementation Encouraging ForcesRestraining Forces people’scustomer-orientation potential(1-C) 1- Creating a deep vision and understanding of customers’ behavior as well as their needs and demands (1-P) 2- Creating high value for customer as well as a nice experience (2-P) 3- Increasing organization’s share from customer’s budget (3-P) 1- Poor priorities planning for investment in CRM; ex. developing technology before strategy or defining expectations of customers and employees (1-N) 2- Little or no attention to employees’ skills and abilities and their lack of belief to CRM implementation (2-N) 3- lack of measurable business goals for customer attraction in branch level (3-N) IT(2-C) 4- Saving costs (4-P) 4- lack of software infrastructure to implement CRM (4-N) 5- Little attempt to develop skills and infrastructures associated with CRM system (5-N) clearstrategyforCRM(3-C) 5- Increasing profitability of each customer (5-P) 6- Increasing attraction of profitable customers (6-P) 7- Increasing Mehr Eghtesad Bank’s profit (7-P) 8- Deepening customer lifetime value (8-P) 6- lack of macro-strategy in the bank to implement CRM system (6-N) 7- Lack of alignment between CRM program, organizational brand and positioning, and customers’ expectations (7-N) changemanagement (4-C) 8- Poor change management (8-N) As Table (3) shows, 8 encouraging and restraining forces for CRM implementation have been identified based on research criteria. By these forces, it is clear that Mehr Eghtesad Bank has no CRM implementation strategy. Thus, it can be analyzed that this bank needs to strengthen customer-orientation culture as well as employees’ mental readiness.
  9. 9. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 48 4.3. Third stage: prioritizing criteria and sub-criteria of research and formulating CRM implementation strategy At this point, data collected from the questionnaires were analyzed by Super Decision software. Using achieved super-matrix (Appendix 1) priority of criteria and sub-criteria was determined based on research objective; results are presented in tables 4 and 5. Table (4) Prioritizing criteria based on research objective RankPrioritized values based on research objectiveCriteria 10.195351-C 20.080583-C 30.03834-C 40.01912-C As Table (4) shows, among search criteria, 1-C criterion (people’s customer-orientation potential) by scale of 0.19535 is the first rate and then 3-C (clear strategy for CRM), 4-C (change management) and 2-C (IT) by scales of 0.08058, 0.03830, and 0.0191 received 2 to 4 ratings, respectively. Table (5) Prioritizing sub-criteria based on research objective Encouraging ForceRestraining Forces RankPrioritized valuessub- criteria RankPrioritized valuessub- criteria 1 1-P0.06903 1 2-N0.05319 2 5-P0.02932 2 6-N0.03606 3 6-P0.02716 3 3-N0.02363 4 8-P0.01383 4 7-N0.02103 5 2-P0.00868 5 5-N0.01304 6 7-P0.00801 6 1-N0.00905 7 3-P0.0068 7 4-N0.00534 8 4-P0.00384 8 8-N0.00533
  10. 10. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 49 Table (5) shows the priority of sub-criteria based on research objective. Among encouraging factors, sub-criterion 1-P (creating a deep vision and understanding of customers’ behavior as well as their needs and demands) with the scale of 0.03257 had the highest priority and sub-criteria 5-P (increasing profitability of each customer), 6-P (increasing attraction of profitable customers), and 8- P (deepening the lifetime value of each customer) received 2 to 4 rankings with scales of 0.02932, 0.02716, and 0.01383, respectively. Among restraining forces, sub-criterion 2-N(little or no attention to employees’ skills and abilities and their lack of belief to CRM implementation) with the scale of 0.05319 had the highest priority and sub-criteria 7-N (lack of alignment between CRM program, organizational brand and positioning, and customers’ expectations), 6-N (lack of macro-strategy in the bank for implementation of CRM system), and 5-N (little attempt to develop skills and infrastructures associated with CRM system) received 2 to 4 rankings with scales of 0.05319, 0.03606, and 0.02263, respectively. 4.4. Step Four: Formulating and prioritizing CRM implementation strategies in Mehr Eghtesad Bank In this stage and using data from the first three steps, strategies for CRM implementation in banks Mehr Eghtesad Bank in Sistan and Balushestan were formulated and prioritized. Based on PIP model, suitable strategies are formulated for each encouraging and restraining forces. So, in order to apply encouraging and avoid restraining force, suitable CRM implementation strategies are presented as follow: I. 1-A: Formulating strategic marketing plans and providing clear statements on vision, mission- Statements clarify organization’s commitment route to quality and focusing on customers so that employees’ understanding about the necessity of customer-orientation can be developed. (1-P), (2-N), (6-N) II. 2-A: Setting and formulating monthly and annual plans to create value for customers - such as customer intimacy, operational excellence or product leadership - to develop a clear and balanced vision. (1-P),(2-P),(6-P),(1-N),(2-N),(3-N),(6-N) III. 3-A: Establishing customers club and completely organizing account information and segmenting customers’ site (for example in macro, micro, and individual levels). (3-P), (4-P), (5-P), (6-P), (8-P), (5-N), (7-N) IV. 4-A: Senior management’s attention to the value that customers gain as much as bank’s earnings and income. (5-P), (7-P), (8-P), (7-N) V. 5-A: Assessing customer satisfaction annually in branch level using criteria such as accountability, accuracy, and being on-time as quantitative indicators; also identifying the causes of dissatisfaction at any branch. (1-P), (2-P), (3-N) VI. 6-A: Determining comprehensive measures to calculate the attraction, return, profitability, and customer lifetime value for each customers department in different branches of province and providing performance feedback to senior management at least every three months. (2-P), (3-P), (4-P), (8-P), (3-N), (7-N) VII. 7-A: Creating a central data storage containing accurate and complete information from customers- such as demographic information, the use of banking services, etc.- and developing suitable software for it. (4-P), (4-N), (5-N) VIII. 8-A: Applying analysis techniques about customers in order to create effective information due to develop sales for each customer or develop cross-selling.
  11. 11. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 50 In Table (6) and based on Appendix (1), the priority of strategies has been shown: Table (6) CRM implementation priority in Mehr Eghtesad Bank Diagram Strategy Prioritized values based on research object Rank 1-A 0.11552 1 4-A 0.07627 2 5-A 0.04889 3 6-A 0.03227 4 7-A 0.0229 5 3-A 0.01728 6 2-A 0.01173 7 8-A 0.00847 8 As shown in Table (6), strategy 1-A with the value of 0.11552 has the highest priority. Strategies 4-A, 5-A, 6-A, and 7-A with values of 0.07627, 0.04889, 0.03227, and 0.0229 received 2 to 5 ratings, respectively. 5. DISCUSSION AND CONCLUSIONS The emphasis on Article 44 of the Constitution and proposing privatization of financial industry in recent years, expansion of international trade for financial institutions, and diversification of needs for financial service customer have led to intense competition in banking industry. Therefore, attracting and maintaining profitable customers as well as meeting their demands are extremely important in this competitive industry. In this regard, customer relationship management is considered as a strategic necessity for all banks which can directly affect customer attraction and make them loyal and permanent; consequently can increase the profitability of banks and financial institutions in the competitive environment. Accordingly, in order to take advantage of benefits in this system and develop customer-oriented culture, this study aimed to identify encouraging and restraining forces as well as formulate and select a suitable strategy for Mehr Eghtesad Bank in Sistan and Baluchestan. Using analytic network process (ANP), paired comparisons between criteria and sub-criteria was done; then they were prioritized. Prioritization showed that among criteria, 1-C (People’s customer-orientation ability) and among sup-criteria, 1-P (Creating a deep vision and understanding of customers’ behavior as well as their needs and demands) for encouraging forces and 2-N (Little or no attention to employees’ skills and abilities and their lack of belief to CRM implementation) for restraining forces were in the highest priority. At the next step and according to prioritization, the most important strategies for CRM implementation in Mehr Eghtesad Bank in Sistan-Baluchistan were formulated. Based on sub-criteria, a paired-comparison was done among selected strategies and strategy 1-A was finally selected as the best strategy. It can be stated according to the chosen strategy that Mehr Eghtesad Bank needs to make suitable culture as well as make belief about marketing and consequently customer relationship management among employees so that it can maintain its position in market and improve relative market share in long-term periods by using pre-defined and formulated customer-orientation strategies based on market, competitor, and the analysis of internal strengths and weaknesses. CRM strategy can be a viable option for achieving this. So, the bank would be able to maintain and
  12. 12. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 51 develop its competitive position in banking industry by identifying target markets and introducing new services continually. Aligning results of this study, Anvari et al. (2005) study can be pointed out. He found that in Refah Bank, there is a difference between staff’s and customers’ views in terms of service quality. Beside this factor, the factor “employees’ lack of belief to customer-orientation” was presented in the current study which shows the two studies are consistent with each other. Nazemi et al. (2005) studied on determining the role of new techniques to provide banking services in order to attract customers and improve the efficiency of the banking system (case study of Bank Sepah in Mashhad). They showed that new techniques to provide banking service have led to increase customers, but not to improve efficiency (reduce costs and time). This study emphasized the need to implement customer relationship management; it was also proposed to use information technology for improvement in the effectiveness of this system. So, the two studies are consistent in this aspect. On the other hand, this study noted that implementing CRM and new technologies will reduce costs; in this aspect, it is not consistent with Nazemi et al. The reason can be attributed to different emphasis and population of the two studies. Keramati and Nikzad (2008) evaluated critical success factors for customer relationship management strategy in textile industry by using fuzzy approach. They stated these CSFs in terms of technology, processes, and human factors. Also in the present study, people and technology have been considered as CRM implementation success factors; in this aspect, it is consistent with Keramati’s research. This study is also consistent with Prastoesen et al. (2011), Bohling (2006), and Lyndgreen et al. (2006) who considered staff, senior management support, strategy and clear goals, change management, and IT necessary and essential to implement CRM successfully. REFERENCES [1] Anvari, A. Goudarzi, M. and Mohammadlo, M. Comparative evaluation of banking quality service on staff’s and employees’ viewpoint, Journal of Human Science Teacher, 2005, No. 3, pp. 53-77. [2] Davari, D. Shanehsarzadeh, M.H. Strategic Management: from theory to performance (1st edition), Atena publication, Tehran, 2001. [3] Doroudian, H. Khanbaba, S. The role of cell phone in CRM, Journal of Industry Engineers’ Viewpoint, 2007, No. 3, pp. 40-48. [4] Rahimi, S. Eshghi, K. Determining optimized combination for Iran’s energy resource using analytical network process, Journal of Energy Economy Studies, 2009, No. 18, pp. 123-160. [5] Alem tabriz, A. Bagherzadeh azar, M. Decision model of fuzzy ANP for selecting strategic supplier, Journal of Business Researches, 2010, No. 54, pp. 57-86. [6] Gholizadeh, M.R. Proving a model to classify target market of tourism industry using SWOT approach (case study: Gilan province), M.A dissertation, Islamic Azad University, Rasht, Iran, 2010. [7] Kazemi, M. Esmaeili, M.R. Beigi firoozi, A. Formulating and prioritizing strategies for sustained tourism development in Lorestan based on PIP and ANP models, Journal of Tourism Studies, 2013, No. 18. [8] Keramati, M.A. Nikzad, M. Assessing critical success factors for CRM strategy in textile industry using fuzzy approach, Science and Technology, 2008, No. 4, Vol. 1, pp. 67-85. [9] Mohammadi, E. Customer-orientation and respecting client, Rasa Cultural Services, Tehran, 2003. [10] Motameni, A.R. Jafari, E. Evaluating CRM implementation fields in hotel industry, journal of Business Administration View, 2009, no. 8, Vol. 30, pp. 49-65. [11] Nazemi, Sh. Mortazavi, S. and Rahati, T. The role of new techniques in proving banking services for attracting customers and improving the efficiency of banking system (case study: Bank Sepah branches in Mashhad), Journal of Human and Social sciences Researches, 2005, No. 5, Vol. 19, pp. 97-122.
  13. 13. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 52 [12] Elahi, Sh. Heidari, B. Customer Relationship Management (2nd edition), Bussiness Publication Company, Tehran, 2008. [13] Bohling, T., Bowman, D., Lavalle, S., Mittal, V., Narayandas, D., Ramani, G. and Varadarajon, R. CRM Implementation: Effectiveness Issues and Insight. Journal of Service Research. 9(2), 2006, 184- 194. [14] Buttle, F. Customer relationship management: Concepts and tools. Amsterdam: Elsevier, Butterworth-Heinemann, 2004. [15] Chen, Q. and Chen, H.m. Exploring the success factors of eCRM strategic in practice. Database Marketing & Customer strategy Management. 11(4), 2004, 333-343 [16] Croteau, A., & Li, P. Critical success factors of CRM technological initiatives. Canadian Journal of Administrative Sciences, 20(1), 2003, 21−34. [17] Gebert, H. Knowledge-enabled customer relationship management: integrating customer relationship management and knowledge management concepts. Journal of knowledge management, 7(5), 2003, 107-123. [18] Khan, A., Ehsan, N., Mirza, E. and Sarwar, S.Z. Integration between Customer Relationship Management (CRM) and Data Warehousing. Journal of Procedia Technology, 1, 2012, 239-249. [19] Kim, H – S., Kim, Y – S. and Park, C – W. Integration of firm's resource and capability to implement enterprise CRM: A case study of a retail bank in Korea. Journal of Decision Support Systems, 48, 2010, 313–322. [20] King, S.F. and Burgess, T. Understanding success and failure in customer relationship management. Journal of Industrial Marketing Management. 37, 2008, 421- 431. [21] Liao, S-K., Chen, Y-C., Chang, K-L. And Tseng, T-W. Assessing the performance of Taiwanese tour guides. African Journal of Business Management, 5(4), 2011, 1325- 1333. [22] Lindgreen, A., Palemer, R., Vanhamme, J. and wouters, J. A relationship management assessment tool: Questioning, Identifying, and prioritizing critical aspects of customer relationship. Industrial Marketing Management. 35, 2006, 57-71. [23] Liou, J. A novel decision rules approach for customer relationship management of the airline market. Journal of Expert Systems with Applications, 36, 2009, 4374–4381. [24] McMullan, R and Gilmore, A. Customer loyalty: an empirical study. European Journal of Marketing, 42 (9/10), 2008, 1084-1094. [25] Monavvarian, A., Fathi, M.R., Zarchi, M.K. and Faghih, A. Combining ANP with TOPSIS in selecting knowledge management strategies (case study: Pars Tire Company). European journal of scientific research, 54(4), 2011, 538- 546. [26] Piercy, N.F. Strategic relationships between boundary-spanning functions: Aligning customer relationship management with supplier relationship management. Journal of Industrial Marketing Management, 38, 2009, 857–864. [27] Sen, A. and Sinha, A. IT alignment strategies for customer relationship management. Journal of Decision Support Systems, 51, 2011, 609–619. [28] Singh, S., Murthi, B.P.S., Steffes, E. Developing a measure of risk adjusted revenue (RAR) in credit cards market: Implications for customer relationship management. European Journal of Operational Research, 224, 2013, 425-434. [29] Sinha, A. and Sen, A. IT alignment strategies for customer relationship management. Journal of decision support system, 51, 2011, 609- 619. [30] Siriprasoetsin, P., Tuamsuk, K. and Vongprasert, C. Factors affecting customer relationship management practices in Thai academic libraries. The International Information & Library Review, 43, 2011, 221- 229. [31] Tu, Y. and Yang, Z. An enhanced Customer Relationship Management classification framework with Partial Focus Feature Reduction. Journal of Expert Systems with Applications 40, 2013, 2137–2146. [32] T.Vijayakumar and Dr. R. Velu, “Customer Relationship Management in Indian Retail Banking Industry”, International Journal of Management (IJM), Volume 2, Issue 1, 2011, pp. 41 - 51, ISSN Print: 0976-6502, ISSN Online: 0976-6510.
  14. 14. International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 2, May - August (2013) 53 Appendix (1) Limited Super Matrix 8-P7-P6-P5-P4-P3-P2-P1-P9-N8-N7-N6-N5-N4-N3-N2-N1-Nselecting the best strategy4-C3-C2-C1-C 0.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.347700.115520.173290.173290.173290.173291-A 0.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.035260.011730.017600.017600.017600.017602-A 0.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.051910.017280.025910.025910.025910.025913-A 0.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.229190.076270.114400.114400.114400.114404-A 0.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.146910.048890.073330.073330.073330.073335-A 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.032270.048400.048400.048400.048406-A 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.022900.034360.034360.034360.034367-A 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.008470.012710.012710.012710.012718-A 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.195350.000000.000000.000000.000001-C 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.019100.000000.000000.000000.000002-C 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.080580.000000.000000.000000.00003-C 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.038300.000000.000000.000000.000004-C 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.009050.013510.013510.013510.013511-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.053190.079830.079830.079830.079832-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.023630.035540.035540.035540.035543-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.005340.008010.008010.008010.008014-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.013040.019520.019520.019520.019525-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.036060.054050.054050.054050.054056-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.021030.031530.031530.031530.031537-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.005330.008010.008010.008010.008018-N 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.069030.103500.103500.103500.103501-P 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.008680.013000.013000.013000.013002-P 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.006800.010250.010250.010250.010253-P 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.003840.005750.005750.005750.005754-P 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.029320.044000.044000.044000.044005-P 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.027160.040750.040750.040750.040756-P 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.008010.012000.012000.012000.012007-P 0.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.000000.013830.020750.020750.020750.020758-P